Date:15/08/2006 URL: http://www.thehindubusinessline.com/2006/08/15/stories/2006081502451500.htm

Back El Forge to raise stake in UK co

Our Bureau

Chennai , Aug 14

Chennai-based El Forge Ltd will raise its stake in Shakespeare Forgings Ltd, a UK-based company it acquired in July last year, it is learnt from sources close to the development.

El Forge bought 74 per cent stake in the company for Rs 2.8 crore. In May, three people were given 50,329 shares in the company as part-consideration of the acquisition.

It is understood that El Forge will increase its stake in the UK company to 100 per cent from 74 per cent, for a consideration of about $200,000.

Shakespeare Forgings is based in Birmingham and caters to the automotive, agricultural and mining segments in the UK.

When El Forge picked up 74 per cent in the company it said that it would acquire the balance equity in three years.

In the year ended 2005-06, El Forge achieved a turnover of Rs 83 crore and a net profit of Rs 6.6 crore.

In the first quarter of the current year, the company's turnover was Rs 22.5 crore and net profit at Rs 1.6 crore.

In the corresponding quarter of the previous year, the company's turnover was Rs 22 crore and net profit stood at Rs 1.2 crore.